NSE The National Stock Exchange has announced that it is going to launch four new indices that will allow for cash market and F&O segment. Which will be launched on April 8, 2024. Among the newly launched indices, one index belongs to Tata Group which is a corporate indices whose name is Nifty Tata Group 25% Cap.
Nifty Tata Group 25% Cap is a corporate index which aims to reflect a specific corporate group. NSE launches new indices after checking many parameters and even not many indices have all trading segment available like future & option trading.
NSE has a total of around 95 indices out of which futures and option trading are available in indices like Nifty 50, Bank Nifty, Nifty Midcap etc. Four new indices are now going to be included in it, one of which is Nifty Tata Group 25% Cap.
Nifty Tata Group 25% Cap
NSE is the new four index launch function out of which people\’s eyes will be more on Tata group indices Nifty Tata Group 25% Cap. This indices base date 1 April 2005 with a base value of ₹1000.
There are a total 10 companies in the Nifty Tata Group 25% Cap, which are decided by free float market capitalization method. At the time of Rebalancing of Shares/ Changes in Index Constituents/ Changes in Investable Weighting Factors (IWF), Index Constituent Weightage (where applicable) is capped at 25%.
Basic Information of Nifty Tata Group 25% Cap Indices
| Factors | Details |
|---|---|
| Base Date | 01 April 2005 |
| Base Value | ₹1000 |
| Launch Date | 16 December 2015 |
| No. of Constituents | 11 |
| Index Rebalancing | Semi Annually |
| Methodology | Periodic Capped Free Float |
| Calculation Frequency | End of day |
Nifty Tata Group 25% Cap Chart 2005 to 2024
You can see the chart of Nifty Tata Group 25% Cap since its inception in the photo below.
Nifty Tata Group 25% Cap has returned 63.97% in 1 year and 27.63% in last 5 years. It has returned 15.71% per annum since its inception.
Nifty Tata Group 25% Cap Stocks List
There are total 10 companies listed in Nifty Tata Group 25% Cap which are ranked on the basis of market cap. Tata Constancy Services Company has the largest stake in these indices at 24.53%. Only Tata Group companies can comes under these indicators. Because this is a corporate index and its purpose to reflect the specific corporate group.
Nifty Tata Group 25% Cap has a total of 10 companies like Major TCS, Tata Motors, Titan, Tata Steel, Trent ltd, Tata Consumer Products Ltd etc. TCS is Tata\’s largest company with the highest market cap, which is why it tops in the indices.
In this index, the movement of TCS, Titan and Tata Motors will give the greatest impact. So, before investing in this index, the information of major companies like Tata Motors, TCS and Titan should be obtained.
Stocks List by weightage
| Company | weightage in % |
|---|---|
| Tata Consultancy Services Ltd. | 24.53 |
| Tata Motors Ltd. | 16.11 |
| Titan Company Ltd. | 14.62 |
| Tata Steel Ltd. | 11.83 |
| Trent Ltd. | 8.02 |
| Tata Consumer Products Ltd. | 6.35 |
| Tata Power Company Ltd. | 6.15 |
| Indian Hotels Company Ltd. | 4.73 |
| Tata Motors Ltd. DVR | 2.83 |
| Tata Elxsi Ltd. | 2.50 |
Different different sectors are also represented in these indices like Information Technology, Consumer Durables, Consumer Services, Metals & Mining, Fast Moving Consumer Goods, Power etc.
As more sectors are covered, the dependence on one sector decreases. If any one sector goes into loss then it is balanced by other sector. Here, total 7 sectors are covered in this index which are shown in the following table in percentage wise.
Sector List by Percentage
| Sector | Weight in % |
|---|---|
| Information Technology (IT) | 27.03 |
| Automobile and Auto Components | 18.95 |
| Consumer Durables | 16.94 |
| Consumer Services | 12.75 |
| Metals & Mining | 11.83 |
| Fast Moving Consumer Goods | 6.35 |
| Power | 6.15 |
The biggest emphasis here is on the IT and Automobile sector which is due to the TCS and Tata Motors company.
How Do I Invest in The Nifty Tata Group Index?
Now, from April 8, 2024, you will be able to trade in Nifty Tata Group 25% Cap as well as Indices like Bank Nifty and Nifty 50 in Capital Market, Futures and Options. With the launch of the new index on April 8, it will also be easy to trade.
How Do I Invest in The Nifty Tata Group Index? To invest in Tata you need to have a Demat account. If you don\’t have a demat account, there are many brokers available in the market where you can simply open an account. We recommend Upstox broker to open demat account
Upstox is a good broker in which you click on the button below to open an account. We have covered all the information about Upstox broker in one article which you can read through the link given below.
Also Read: How to Open Demat Account in Upstox?
Once your demat account is opened, activate the futures and options and commodity segments. Now you search Nifty Tata Group 25% Cap and you will see all the options in which you can trade instantly.
Conclusion
In this article, we have discussed in detail about the newly launched indices of Nifty Tata Group 25% Cap. NSE is going to introduce 4 new indices out of which Tata Group\’s indices will be the most eyed. Which companies in the Tata Group are included in these indicators and which sector has a how many percentage share is also seen in detail.
